What is the procedure for dematerializing physical share certificates?

Ans: You need to open a demat account in the name(s) in which the share certificates are and submit the share certificates along with the duly completed Dematerialization Request Form (DRF) either by courier or by hand delivery at the nearest IDBI Capital branch. You can also transpose-cum-Demat the shares.

What is transposition cum demat & what is the procedure?

Ans:Transposition cum demat enables the customer to transpose (swap/interchange) names of the joint holders in desired order along with the process of dematerialization of certificates. For e.g. If A & B hold a Demat account and if the certificates are in the names of B & A the shares can be dematerialized in the demat account of A & B. The customer should submit duly completed transposition form along with the Dematerialization Request Form (DRF) and the share certificates. No new name can be added through transposition process.

How long will the dematerialization process take?

Ans: The dematerialization process takes about 30 days from date of submission of shares to IDBI Capital.

What is the process for dematerializing physical shares of a joint account in case of death of one account holder?

Ans:In this case, such shares could be dematerialized in the DEMAT account of the surviving member(s) provided that the surviving member(s) submits a Transmission cum Dematerialization form duly signed by all the surviving holders and a notarized/certified true copy (by nationalized bank) of the Death certificate along with DRF. Download the required form in the following format( PDF)

How can I dematerialize shares with Pre Marital / Maiden names?

Ans: To demat such shares you need to submit a certified true copy of the marriage certificate along with the DRF.

Can I as a sole holder of the share certificates add one more name as a joint holder at the time of dematerializing share certificates?

Ans:No. However, this can be done by opening an account as the sole holder (account A) and dematerialize the share certificate. Then you need to open another depository account (account B) in which you are the first holder and the other person is the second holder and make an off market transfer of the shares from the account A to account B. You will have to incur a charge on this transaction.

Which statements would I be receiving?

Ans: Customers have the facility to receive statements on their email id’s registered with IDBI Capital. However the Transaction statement and the Holding statement are sent by courier on a quarterly basis. If there is a transaction in the demat account you will receive a statement on a monthly basis. And if there is no transaction or there are no holdings in the demat account you will receive statement on a quarterly basis. Other than this, the requested statements (additional) will be charged Rs.25/- per demat account.

How can I check for my demat holdings online on IDBIDirect.in?

Ans: After you log-in to your Trading account, select the ‘Demat Allocation’ option under the ‘Trading Site’ option and click on the Go button to view your demat holdings.

What is the procedure to transfer the shares from one demat account to other?

Ans: To transfer the shares from one demat account to another, you have to use the Delivery Instruction Slip (DIS)/Transfer Instruction For Delivery (TIFD) Slip as provided by the DP with whom the source demat account is, mention the details of the DEMAT account where you wish to move the shares and specify the shares you wish to transfer. This DIS/TIFD Slip is required to be submitted to the nearest branch of the DP with whom you are holding your DEMAT account.

What are the requirements for opening an individual online trading account with IDBIDirect?

You should open a savings account with IDBI Bank/HDFC Bank/Axis Bank/ICICI Bank with NET BANKING facility, if you currently do not have one. You will need to submit a cheque leaf of the account for our records.

Two photographs of the trading account holder and one photograph of each of the demat account holder is required. The photographs should be signed across by the respective holders. One photograph of the nominee will also be required.

The correspondence address, mentioned in the account opening form, should exactly match with that given in the address proof.

Ans: You can link your savings account maintained with IDBI Bank/HDFC Bank/Axis Bank/ICICI Bank & also savings account maintained with our alliance banks i.e. PNB, Vijaya Bank, OBC, Union Bank of India, Karur Vysya Bank & Lakshmi Vilas Bank with your trading account. You can specify the account details in the form and the same shall be linked with your trading account. In case you don’t have a savings account with any of these banks we can help open a new IDBI Bank savings account along with the trading account for you. However to avail of a 3in1 account facility, your savings account may be maintained with HDFC Bank/Axis Bank/ICICI Bank, but Demat account should be maintained with IDBI Capital.

Do I require Net Banking facility?

Ans: Yes, for transferring funds online from your savings account to trading account, you require the Net Banking facility. The system shall verify your Net Banking user Id and password before transferring funds to our trading account. In case you do not have a Net Banking facility, you need to apply for the same at your local bank branch.

How do I get an Account Opening confirmation?

Ans: Post acceptance, we shall dispatch a “Welcome Kit” on your communication address, which would include your DEMAT and Trading Account number.

When can I expect my Welcome Kit after the Trading account is opened?

Ans: You will receive your Welcome Kit within 7 working days from the date of receipt of the form in IDBI Capital.

What is MICR Code and why is a cheque leaf compulsory for opening the online trading account?

Ans: MICR stands for Magnetic Ink Character Recognition. It normally appears on the cheque leaf of the savings account. We take the cheque leaf as a proof for savings account number and to know the branch in which you have a savings account for crediting the dividend. The customer has to declare one of his accounts as primary account & has to fill up page no 7 if another account has to be attached.

How frequently will I be able to know the status of my accounts?

Ans: The status of your Bank, Demat and trading account shall be available to you online 24 hours a day through the Internet. You will be able to access all details regarding your orders and trades on the website and view the results of your trade reflected in your Bank account and Demat account on the very day of the settlement, without waiting for the statements from the DP and the Bank.

What is the procedure for change of address in trading account and demat account?

Ans: Click on “Service Requests” link under Customer Services section. Click on the ‘Change of Address Form’ link, which allows you to download the required form in PDF . Take a print out of the same and fill in the details. Submit this request along with a valid Address proof of the new address and the photo identity proof, at the nearest IDBIDirect(branch ) . The address will be updated within 7 working days. In case you do not have your DP account with IDBI Capital and wish to get an address change request registered for your demat account, you will need to inform and do the needful directly with the DP with whom you are maintaining your demat account.

How do I verify if my new address has been updated?

Ans: You will be able to view it in the ‘My Profile’ option under ‘Services’ on the top menu bar. Once the address has been updated a confirmation letter will be posted at your new communication address. In case of any discrepancy in the address please send an email to our ‘Customer Care’ desk at custcare@idbidirect.in

What is the procedure for changing the bank account details for trading and demat accounts?

Ans:Click on “Service Requests” link under Customer Services section. Click on ‘Change of Bank details’ link, which allows you to download the required form inPDFTake a print out of the same and fill in the details. Submit the request along with the Cheque leaf of new savings bank account at the nearest IDBIDirect branch .The Bank details will be updated within 7 working days. In case you do not have your DEMAT account with IDBI Capital and wish to get your bank account details change request registered for your demat account, you will need to inform and do the needful directly with your depository with whom you are maintaining your demat account.

What is the procedure to appoint/ change of nomination?

Ans: Click on “Service Requests” link under Customer Services section. Click ‘Nomination Request’ Form link, which allows downloading the required form in PDF . Take a print out of the same & fill in the details. Submit the request at the nearest IDBI Capital branch or can send it directly to our Mumbai office at IDBI CAPITAL MARKETS & SECURITIES LTD., 6th Floor, IDBI Tower, World Trade Centre, Cuffe Parade, Mumbai - 400 005. In case you do not have your DP account with IDBI Capital and wish to get your nomination details change request registered for your demat account, you will need to inform and do the needful directly with your depository with whom you are maintaining your demat account.

What is the procedure to place the Transmission request for demat account?

Ans: Click Service on “Service Requests” link under Customer Services section. Click on ‘Transmission Form’ link, which allows you to download the required form PDF. Take a print out of the same and fill in the details. Submit the request along with relevant documents as mentioned under the ‘Transmission’ link at the nearest IDBIDirect branch or send it directly to our Mumbai office at IDBI CAPITAL MARKETS & SECURITIES LTD., 6th Floor, IDBI Tower, World Trade Centre, Cuffe Parade, Mumbai - 400 005. In case you do not have your DP account with IDBI Capital and wish to get place a Transmission request for your demat account, you will need to inform and do the needful directly with your DP with whom you are maintaining your demat account

What is the procedure to place the Transposition request for demat account?

Ans: Click Service on “Service Requests” link under Customer Services section. Click on ‘Transposition Form’, which allows you to download the required form PDF . Take a print out of the same and fill in the details. Submit the request along with relevant documents as mentioned under the ‘Transmission’ link at the nearest IDBIDirect branch or send it directly to our Mumbai office at IDBI CAPITAL MARKETS & SECURITIES LTD., 6th Floor, IDBI Tower, World Trade Centre, Cuffe Parade, Mumbai - 400 005. In case you do not have your DP account with IDBI Capital and wish to get place a Transmission request for your demat account, you will need to inform and do the needful directly with your DP with whom you are maintaining your demat account

Can I view/update my profile online?

Ans:You can view your personal details online. However, to update your Tel No./Mobile No./Email id you can contact our customer care executive on 1800-22-3366/ 022-39135001 or write to us at custcare@IDBIDirect.in

Do I need to intimate the companies individually regarding the changes in bank details/mandate for the shares held in my demat account?

Ans:No, you don’t have to intimate the companies individually. When the dividend is announced for a particular security, the depository (NSDL/CDSL) will give all the details of the investors having electronic holdings of that security as of record/book closure date to the Issuer/Registrar.

Can I operate a joint account on “either or survivor” basis just like a bank account?

Ans:No. The demat account or trading account cannot be operated on “either or survivor” basis like the bank account.

Can a second holder in the savings account be the trading account holder for IDBIDirect account, wherein the savings account is on either or survivor basis?

Ans: Yes. The second holder in the savings account can be the trading account holder. He should furnish Bank verification letter mentioning that the account is operated on either/survivor basis (Format available with branches) or the same should be mentioned on Bank passbook/ bank statement.

Can I add or delete names of account holders (second or third account holder) after opening an account?

Ans: No. Addition/Deletion of the names of the account holders for a depository account is not permissible. If you want to change name or add/delete an account holder, you need to open a new account in the desired holding pattern. Also, please note that one individual can hold only one trading account.

What is the procedure if I wish to open a trading account or change the existing signature in the demat account but I am unable to sign due to old age/medical grounds?

Ans:You need to submit a request letter mentioning the facts, affidavit with the thumb impression duly attested by a Gazetted officer/Notary, proof of identity and a doctor’s certificate.

If any loss occurs due to any technical problem from IDBIDirect site, who will bear the same and how will I be compensated for it?

Ans:IDBIDirect is not liable to compensate for any loss that occurs due to any technical problem or any other problem. This clause has been specified in the online trading account-opening form.

What are the Annual Maintenance Charges (AMC)?

Ans: This is the fee that is charged to maintain your Demat account. You can check the AMC by speaking to our customer care executive on 1800223366 / 02239135001. In case you have opened your trading account with IDBIDirect through our Bank alliance clients, you will need to refer this query to your bank branch or to their call center.

How can I know about the brokerage charges?

Ans: For brokerage charges, click here & register yourself, our representative will get in touch with you or Call us on 1800223366 / 02239135001 to speak to our customer care executive.

What is the procedure to get F&O activated?

Ans:You have to submit a request letter for F&O activation to your nearest branch along with a copy of self attested pancard & Photocopy of any one of the following financial proofs:

Bank statement (last 6 months)

Demat holding statement (not older than 3 months)

Salary slips (last 3 months)

ITR duly acknowledged (last financial year)

Form-16 (last financial year)

Net worth Certificate (certified by CA)

Wealth tax return

Copy of Annual Account (Non-individual) (last 2 years)

What is the procedure to register for Trade-over-Phone (ToP) facility?

Ans: You have to register yourself for ToP by using the option of registration at the backside of the brokerage rate card at the time of signing on your new account with IDBIDirect. ToP would then be activated as part of your new trading account activation process. You can only place equity / F& O orders through this facility.

What should I do if I have forgotten my password?

Ans: Just click on the ‘Forgot Password’ link on the login page and provide the details. A new system generated login/trading password will be immediately emailed on your email id registered with us.

What needs to be done if an error message like ‘Invalid email id’ is displayed while using the ‘Forgot Password’ link to get the new system generated login and trading passwords?

Ans:This kind of an error is reflected due to mismatch in the email id you type and the one in our records. You can confirm your registered email id with our CustCare desk. The registered email id and password (which is reset by CustCare) is disclosed to you after the verification. If there is a change in your registered email id you can modify the same by using the ‘My Profile’ link in the ‘Services’ section. Please change your password once you log in

How can I change my password?

Ans:1. You can change your login and trading password online at any time by using the ‘Change Password’ option in the ‘My Profile’ section. As per the “New Password Policy” laid down by SEBI, it is mandatory to change your password every 14 days. The password shall automatically expire after 14 days. After the 14th day whenever you logon to the site, you will be prompted to change the password.

How much funds can I transfer online in a day’s time for trading purpose?

Ans:If your bank is allowing you a hold facility (like IDBI Bank, PNB) you can increase your buying power by putting on hold all your free balance in the savings/current account. There is no limit on the transfer of funds if you are using HDFC Bank/ Axis Bank/Oriental Bank of Commerce/Karur Vysya Bank/ICICI Bank payment gateways.

What is the procedure to Lien mark/transfer funds to place an order for buying shares?

Ans:

Login into the trading account.

Ensure availability of adequate buying power.

If you have already lien marked or transferred funds, simply execute the buy trade.

In case buying power in your trading account is insufficient, please go to the banking centre, choose the funds lien/ transfer option, indicate the amount to be lien marked / transferred, complete the procedure. The buying power will updated appropriately.

Complete the purchase transaction.

I am not able to move funds

Ans: Move funds/allocate funds link directs you to your Banking Site (banking gateway) of your linked Bank account. Please enter your I-net Banking Login id and the Login/Transaction passwords as per your banks system. On the successful completion of the transaction, the funds are moved to your trading account. In case of an unsuccessful transaction please contact your bank directly.

How and when will the funds from sales proceeds be credited to my bank account.

Ans: If you have a bank account with IDBI Bank/Punjab National Bank/Union Bank/Vijaya Bank/Lakshmi Vilas Bank, then you need not put a withdrawal request. IDBIDirect would automatically credit the amount in your bank account by the next working day of the payout. If you have a bank account with HDFC Bank/Axis Bank/Oriental Bank of Commerce/Karur Vysya Bank/ICICI Bank, the funds withdrawal requests placed before 3:30 pm from Monday to Thursday will be executed on the next working day by 12:30 pm. All withdrawal requests placed after 3:30 pm from Monday to Thursday will be executed on the 2nd working day for e.g. a request placed on Tuesday after 3:30 pm will be executed on Thursday by 12:30 pm (provided both Wednesday and Thursday are exchange and bank working days).
Withdrawal requests placed before 3:30 pm on Friday will be executed on Monday by 12:30 pm. Requests placed any time between Friday (after 3:30 pm) and Sunday will be executed on Tuesday by 12:30 pm.

What is Buying Power?

Ans: IDBI Capital keeps track of the funds inflows and outflows actual/expected in your trading account through the concept of Buying Power. Buying Power at any point of time refers to the amount of money available in your account to buy stocks, Mutual Funds or IPOs. In order to trade for a particular amount in any of these instruments through IDBIDirect.in, you first need to create “Buying Power” by transferring funds to your trading account/marking a Hold in your bank account. Alternatively, you can create Buying Power by selling shares from your DP account–

What do I do if an error message “insufficient funds” is displayed while applying for an IPO?

Ans:Investment in IPO, Mutual Funds and F&O requires Free Cash Balance in the Buying Power. The Buying Power is the summation of the Free Cash Balance and the Projected Inflows on account of the securities sold in previous two trading days. You are allowed to invest in F&O, IPO and MF only to the extent of Free Cash/Withdrawal Balance in your Buying Power. You need to increase your Buying Power by transferring funds from your savings account to your trading account online from the Banking Center.

What do I do if an error message “Exposure not available” is displayed while placing an order?

Ans:This situation arises when the Buying Power is insufficient to place an order. In such cases you would be required to increase your Buying Power by moving the funds into your trading account or cancel the pending orders in the system.

Will my Buying Power increase as soon as I sell a stock?

Ans:
Sale proceeds from stocks can be used to buy stocks during the same settlement. Therefore, when you sell stocks, your Buying Power for that settlement goes up instantaneously. However, in case of PTST sell your buying power would increase by 80% of the sale proceeds. The 20% would be blocked till the successful settlement of the sell transaction. This is done to take care of any liabilities on account of short delivery of your buy transaction.

What are Cash Orders?

Ans: Cash Orders are intended for settlement by delivery. Cash Buy orders are processed by IDBIDirect.in after ensuring that you have sufficient Buying Power to pay for all your obligations if the order is executed. IDBIDirect.in processes Cash Sell orders after checking that your delivery obligation can be met from stocks available in your Selling Power.

What are Margin Orders?

Ans:Margin order basically means that you need to square off the position before the close of the market and do not intend to settle the transaction by delivery. In this case, only the margin amount is checked against your Buying Power Therefore, in Margin Orders you can place Buy orders of value greater than the amount of funds available with you, or place Sell orders without having the securities in your Selling Power. An initial margin amount is blocked from your Buying Power at the time of placing the order.

What’s the difference between Margin and Cash orders?

Ans:Margin implies the intra-day transaction which gives you five times exposure for the Buying Power on select scripts specified from time to time by IDBIDirect.in and the same are compulsorily settled (squared-off) on the same day. Intra Day or Margin orders are allowed on select scripts, the list of which is available for you to see on the trading site. Cash transaction trades are settled on T (Trading) +2 basis. To view the list of the scripts on which Margin Orders can be placed, click the Margin Stock List under the Help section of the Classic/Streaming platform

Can I convert a Margin Order and Trades into delivery?

Ans: To convert margin order to delivery order you need to cancel the margin order and place a delivery order. However, you can covert a Margin Trade into a Delivery Trade from “Today’s Trades” under Trading Site.

How is a Cash Order processed?

Ans: Cash orders are intended to be settled by delivery, although you have the flexibility to square off within the same settlement.

Buy Order Processing:
Buy Order Processing: When you place cash Buy Order, we check your Buying Power at that time. If your Buying power is equal to or more than the Order value, the order is accepted and sent to the exchange for execution. If your Buying power is less than the Order value, the order is rejected.

Sell Order Processing:
When you place cash Sell Order, we check your selling power for that. If your selling power is equal to or more than the order quantity, the order is accepted and sent to the exchange for execution. If your selling power is less than the order quantity, the order is rejected.

Processing at the Exchange:
Once an order is validated for adequate buying power or selling power, it is sent to the stock exchange for execution until the order is executed, it would appear in your Pending Orders screen. At the stock exchange, orders are matched on price-time-priority & once a match is found, the order gets executed. One order may result in one or more trades.

How is a margin order processed?

Ans: In case of margin orders, only a specified percentage of the order value is blocked out of your Buying Power. These orders are intended to be squared off before the cut off time of 3.00 pm.
Initial margin amount is blocked for both buy and sell orders. As soon as a margin order is placed, our system would check whether your Buying Power is more than or equal to the initial margin required. If yes, the order would be accepted and sent to the Stock Exchange. Until the order is executed, it would appear in your Pending Orders screen. At the Stock Exchange, orders are matched on price-time-priority and once a match is found, the order gets executed. This means that you have now created a buy position (if you had placed an order to buy shares) or a sell position (if you had placed an order to sell shares). Having created a position, you have two options:

Square off the position during the day:
Squaring off a position means closing out a margin position. Once a position is squared off, you would book the profit or loss arising from the same, which would be credited or debited by the Stock Exchange on day T+2 (T being the trade date).

Convert the Position to delivery:
If you do not wish to square off your Open Position completely, you would have to convert the position to delivery. A Margin Order once converted to delivery is treated exactly like a Cash Order.

What is Square Off?

Ans: A process whereby investors/traders buy or sell shares and later reverse their trade to complete a transaction is called squaring off of a trade. (E.g. an Open Buy Position can be squared off by placing a Sell Order). For instance, if you purchase 50 shares of say Infosys and sell them later before the market closes then you have squared off your buy position.

What happens if I don’t square off my positions by 3.00 pm?

Ans: The cut-off time for placing margin orders is 3:00 pm. If any margin positions are not squared off by 3.00 pm, IDBIDirect.in will automatically generate square off requests for such positions.

What is additional margin call?

Ans: A margin position can be created subject to sufficient margins maintained with IDBIDirect.in. However, the value of your margin positions keeps changing continuously, depending on the fluctuations in the prices at the Stock Exchange. The margin positions are, therefore, continuously monitored to keep a track of the "Mark-to-Market (MTM) loss". If the MTM loss exceeds the threshold margin limit, a call for Additional Margin would be made, and the funds would be blocked to that extent. If enough funds are not available, securities are sold to release the margin.ORAdditional Margin is the margin amount required to safeguard a position when it has been identified as short of margin. Additional margin is required when the Available margin against the position goes below the Minimum margin required to be maintained for the position

What are Limit Orders?

Ans: A limit order is an order to buy or sell a stock at a specific price or better. A limit order can only be executed if the stock market price for that particular scrip reaches the limit price. A limit order is not guaranteed to execute.

What are Market Orders?

Ans: A market order is an order which an investor makes to buy or sell a stock immediately at the
best available current price. A market order is most likely to get executed as it does not contain
restrictions on the buy/sell price or the timeframe in which the order can be executed.

Should I place a Limit Order or a Market Order?

Ans: The advantage of a Limit Order is that you can be sure of the price at which the trade will take place. But the disadvantage is that the trade may not take place at all if your limit price is not reached. All orders placed with IDBIDirect are Day Orders. So, if not executed, they expire at the end of the day.
You should enter a Limit Order, when you are ready to buy or sell only at your price. You can check regularly how the market price is moving and modify the Limit Price if required. You should enter a Market Order, when you want to be sure that your order will be executed at the best available price.

What is a Stop-Loss Order?

Ans:A stop-loss order is an order to buy or sell a stock once the price of the stock reaches a specified price, known as the stop price. When the stop price is reached, a stop order becomes a market order. A buy stop order is entered at a stop price above the current market price. Investors generally use a buy stop order to limit a loss or to protect a profit on a stock that they have sold short. A sell stop order is entered at a stop price below the current market price. Investors generally use a sell stop order to limit a loss or to protect a profit on a stock that they own. It is designed to limit an investor's loss on a security position.

When should I specify Disclosed Quantity?

Ans: : If you want to disclose only a partial quantity to the market, specify the Disclosed Quantity in your order. This is an advanced option and is normally not used by small investors. It can be left blank. Disclosed Quantity allows you to disclose only a portion of the total order quantity to the market. For example, if the order quantity is 10,000 and the disclosed quantity is 2,000, then only 2,000 is disclosed to the market. After this quantity is fully matched and traded, a subsequent quantity of 2,000 is disclosed. Thus, totally five disclosures with the same order number are shown one after the other in the market. This option is useful if you are placing a large order and you do not want the market to know the full quantity

What is an Immediate Or Cancel order (IOC)?

Ans: A Market or Limit Price Order which is to be executed in whole or in part as soon as such order is placed in exchange, and the portion not executed is to be treated as cancelled.

What is Order Status?

Ans: As soon as you place an order online, it is sent to the Exchange for execution. However, the exchange matches orders on price-time priority and until a match is found for your order, it will remain 'Pending' at the exchange. It is also possible that only part of your ordered quantity gets executed at the exchange. The remaining quantity is called 'Pending Quantity' and such an order is called a 'Partially Traded Order'. Click on ‘Pending Orders’ to view such orders. If an order does not get fully executed till the end of a trading day, then the pending part of the order expires at the end of the day. 'Expired Orders’ are deleted at the end of the day. Once an order is fully traded, its status becomes 'Traded’. When an order has been rejected by our system (for example, orders rejected for insufficient funds or insufficient selling power or at the exchange) for any reason, its status is 'Rejected'.
When you have cancelled an order, and such a cancellation request is accepted by the Exchange, the status of that order is 'Cancelled'.

What are Open Positions?

Ans: Open Position is the net number of shares of any company that you have bought or sold on any day. You can close an open position by squaring it off, i.e. selling a buy position or buying back a sell position.
Open Margin Positions are created on execution of Margin Orders. The open positions are reduced on execution of Cover Margin Orders or conversion of open positions to delivery. Open Cash Positions are created on execution of cash orders, or on conversion of Open Margin Positions to Delivery. The Open Quantity multiplied by the Average Buy or Sell price of a position gives the value of the position.

What are Open Settlements?

Ans: Open Settlements are settlements where trading has been done, but settlement has not yet been completed. At both NSE and BSE, the trading cycle is on a 'T+2' basis. Thus, trades executed on March 4, 2007 get settled on March 06, 2007. Hence, on March 06, 2007, there will be two Open Settlements with trade dates on March 05, and March 04, 2007.

How is Realized Profit / Loss calculated?

Ans: For every position created, you can view the actual and notional profit or loss generated by that position. The Realized Profit is calculated on the transactions, which are closed. It is the actual or Realized Profit/Loss that has been crystallized by closing all or part of a position. For example, on a day if you buy 100 shares of ACC at an average price of Rs.200 per share and sell 20 shares of ACC at the average price of Rs.220 per share, then the realized profit or loss is (220-200)*20 = Rs.400.

How is Unrealized Profit/Loss calculated?

Ans: The notional or unrealized profit is calculated by comparing the last traded price with the average buy price of the Open Position (that is, the Net Quantity). The Total P&L is the addition of the Realized and the Unrealized Profit. For example, on a day if you buy 100 shares of ACC at an average price of Rs.200 and sell 20 shares at an average price of Rs.220, then you have a net buy position of 80 shares in ACC. Suppose the market price of ACC is Rs.225. Then the Unrealized profit or loss is (225-200)*80= Rs.2000/-

What is short selling?

Ans:Short selling (or "selling short") is a technique used by people who try to profit from the falling price of a stock. It is a trading strategy that seeks to capitalize on an anticipated decline in the price of a security. Short sellers assume that they will be able to buy the stock at a lower price than the price at which they sold short, netting a profit in the process. For example “A” thinks HUL is overvalued. He sells short 200 shares of HUL at Rs. 520 per share. The stock market crashes after 2 weeks and HUL's share price falls to Rs. 510 per share. “A” buys back 200 shares of HUL and closes out the short sale. “A” gains the difference between the sales proceeds and the purchase costs and pockets Rs. 2,000 from the short sale, excluding transaction costs.

Why do I need Buying Power for a Margin Sell Order?

Ans: You need Buying Power for a Margin Sell because IDBIDirect uses the funds blocked for risk management. Initial margin amount is blocked for both buy and sell orders. As soon as a Margin Order is placed, our system would check whether your Buying Power is more than or equal to the Initial margin required. If yes, the order would be accepted and sent to the Stock Exchange.

How can I be sure that I shall be trading at a price I want to or at a price appearing on the website?

Ans:On IDBIDirect you have an option to select the Market Depth of scrip wherein the top five bidders and sellers with the quantity and the price at that point of time on the respective exchanges are displayed. This facilitates you to select his bid/offer price. The traded orders are displayed in the “Today’s Trade” option on the site where as the pending order can be viewed from the “Today’s Order” option. Moreover, you also have the option of modifying or cancelling the order till the moment the order is executed at the exchange. Finally, an online trade confirmation reaches you as soon as we receive it from the exchange, while contract notes are dispatched at the end of the day through registered emails. On IDBIDirect, you decide what you want to buy and buy the share at the price you want to and therefore you are in total control of your trades.

How can I Modify or Cancel my order?

Ans:You can Modify or Cancel an order any time before execution. You can do this by accessing ‘Today’s Order’ on the Trading Site and clicking on the 'Modify' or ‘Cancel’ hyperlink against the order, which you wish to modify/Cancel. However, you cannot modify/cancel your order while it is
“In Process”, i.e., confirmation is awaited from the Exchange for the acceptance of the placement of any order or any modification/cancellation request. In case the order is already partly executed, only the unexecuted portion of the order can be modified/cancelled.

How can I know if my order is executed?

Ans: You can monitor the status of your orders as well as trades online on the ‘Today’s Orders’ screen. The status of an order is updated real-time in your ‘Today’s Orders’ screen. As soon as the order gets executed at the Exchange, it is displayed under ‘Today’s Trade’. As soon as the order gets executed at the exchange, its status becomes 'Traded'. One order could result in multiple trades at the Exchange. On the ‘Today’s Trades’ screen you can view the trade-level details of all trades executed for you.

What is the Average Execution Price?

Ans: The order placed by you may have resulted in multiple trades. For each trade, certain quantity would have been bought (or sold) at a particular price. The Average Buy (or Sell) Price, is the weighted average Buy (or Sell) price across all executed trades.

How can I view the market watch under Power streaming?

Ans: Please follow the below mentioned steps:

Download Sun Java on your system, a link is provided on the login screen to install it.

Enable the Sun Java by making the IE settings shown in the PDF link on login screen.

Disable the Pop-up Blocker on Internet Explorer web browser for a temporary period of time while you are trading.

Delete cookies and delete files on Internet Options

What are the timings for placing an After Market Order?

Ans: IDBIDirect.in provides you with a facility to place your orders after the market hours and this is termed as After Market Order (AMO). AMO can be placed between 17.30 Hrs to 8:45 Hrs the next day.

What’s the procedure to sell the shares?

Ans: You need to allocate the shares from the Demat allocation. Put a Sell Order by specifying the sell quantity, price in the order form and click the Submit button. Confirm your transaction by clicking the Confirm button.

What is to be done when an error message “Exposure not allowed” is displayed while selling the shares?

Ans:Every order requires some margin to be blocked at the time of placing an order. Even for Sell orders, the system checks for the margin to be blocked. If there is no sufficient margin left in Buying Power to be blocked for the sell order, the system gives the error message “Exposure not allowed”. At this time the user should cancel the pending orders in the system or transfer some funds (approx. 20% of the trade value.)

What is a contract note?

Ans: A confirming note, containing details of a stock exchange deal, which is sent by a broker to a client. The contract note shows: the date and time of deal, the title of the security, the number bought/sold, the price paid/received, the total value of the deal, the stamp duty (if a purchase of shares), and the amount of commission charged by the broker. Traditionally, contract notes were posted, but are now often emailed.

I am not able to see the updated Last Traded Price in the Classic trading platform

Ans: Unlike the Streaming platform that reflects real time prices automatically, to refresh and view the updated Last Traded Price in the Classic platform you need to click the ‘Get Quote’ button.

Why a message “Cancelled by Exchange” is displayed while placing an order?

Ans: This kind of a message is displayed when an order is placed with an Immediate or Cancel Order (IOC) option.

Why a message “Frozen by Exchange” is displayed while placing an order?

Ans: This kind of message is displayed when an order is placed at a much higher price than its current market price.

Why a message “Rejected by Exchange” is displayed while placing an order?

Ans: This kind of message is displayed when an order is placed outside the upper and lower circuit prices.

What is a Mutual Fund?

Ans: Mutual Fund is a mechanism of pooling together the savings of a large number of investors for collective investment, with an objective of generating regular or periodic returns and capital appreciation, with adequate safety and easy liquidity.

What is NAV?

Ans: NAV is the total market value of all the assets held in the mutual fund portfolio less the liabilities, divided by all the outstanding units. That amounts to nothing but the “book value”. The NAV measures how much each share of a mutual fund is worth. So essentially, the NAV of a mutual fund is the cost of one share of the fund.

Ans: The NAV of the schemes are declared on daily basis for Open ended schemes and on weekly basis for Close ended schemes. The NAV so declared are to be published at least in two daily newspapers and the same is uploaded on the AMFI website (http://www.amfiindia.com) daily before 8.00pm.

What is Buying power?

Ans: The Buying Power is the purchase limit assigned to the client against the amount available in his account. For e.g. if a client is having the Buying Power of Rs.10, 000/-, it means that the client is having Rs.10, 000/- credit balance in his individual ledger account.

Does my Buying Power change with the MF transactions?

Ans: Yes, if you execute a purchase request your Buying Power is reduced/debited by the amount of purchase made by you. If you execute a sale/repurchase/redemption request, then on receiving the proceeds of the same from the AMC, your Buying Power is increased/credited. If an AMC announces dividend then your bank account is credited directly.

How do I purchase Mutual Funds Online?

Ans: Select “Mutual funds” under ‘Trade Now’ from the top menu bar and enter your log-in details. Check your “Buying Power” before placing any purchase order. In case of shortage of funds, you need to transfer funds from your Bank Account using “Funds Transfer” option. Click on the "Purchase Units" link. Select the fund house and the specific scheme in which you want to invest. You can also select the option for dividend by clicking the desired link. Click on “Submit “button and on confirming the details click on the “Confirm” button.

Can I modify/cancel my transactions?

Ans: Yes, the Modify or Cancel option would be available to you till the final confirmation of the order is placed by you. Once you confirm you cannot modify or cancel the order placed by you. You can only modify/cancel any Systematic Investment Plan (SIP)/Systematic Withdrawal Plan (SWP) order placed by you.

What is a Systematic Investment Plan?

Ans: Systematic Investment Plan is a method of investing into a scheme at regular intervals over a defined time frame. The investor can invest monthly or quarterly depending upon the SIP frequency opted. Since, a fix amount is invested regularly; the investor is able to get more number of units in the falling market and fewer units when the market is on the rise. This helps the investor to smoothen out the market fluctuations and the investment will be at a low cost over a period of time. This strategy in investing is called "Rupee Cost Averaging".

What’s the procedure for a SIP?

Ans: To apply for a SIP online, click the SIP/SWP option and select the fund house scheme of your choice. Specify the amount of each installment, SIP frequency, period from the start date and click the confirm button.

From which account will my SIP subscription amount get deducted on a monthly basis?

Ans: The amount for SIP subscription gets deducted on a monthly basis from your Buying Power. It is therefore, required that you maintain sufficient balance in the Buying Power otherwise the SIP will get rejected, stating the reason “Transaction rejected due to shortfall in Buying Power”.

What is Systematic Withdrawal Plan (SWP)?

Ans: The Systematic Withdrawal Plan is the facility extended to the investor to enable them to withdraw funds at regular intervals.

Is there any NAV record date for sale and purchase of MF?

Ans: There is no record date for NAV declaration. Applicable NAV for purchases and sale will be as per the SEBI stipulated cut off time. Currently, the cut off time for Mutual Funds is 3 pm in the offline mode, 1 pm for Liquid Schemes and 2.30 pm in our online platform (for all the Schemes). The AMCs will be declaring the record dates for dividends and bonus units, for their scheme.

What is the cut-off time for NAV for online MF subscriptions?

Ans: In case of all online transactions, the cut off time is 2.30 pm. You will be allotted the units on the same day’s NAV for all the schemes, i.e. the applicable NAV will be on T+0 basis.

Which NAVs are uploaded on the MF Portal and when?

Ans: NAVs of the AMCs which have signed Service Level Agreement with IDBI Capital are uploaded on the MF section latest by 11:00 am on the next working day (Monday to Friday).

In what form will I receive the statement of holding?

Ans: One can view his/her holding online. However, he/she can place request with Custcare to get holding statement by email.

Will I get an online acknowledgement of my MF transactions?

Ans: Yes, we will email an acknowledgement for all your transactions.

When will I be able to see my transaction details?

Ans:Purchase, Sale or Switch transactions can be viewed at any time in the option – Check Status - Transaction History. It will also display the status of the transactions (Pending, Rejected, Accepted). Further to this, to verify the holding of the Mutual Fund units, you can view the option - Check Status – Holding Statement. Generally within 2 working days the successfully executed purchase transactions are uploaded in the system and redemption transactions are completed within 3 working days.

Can I transact anytime during the day?

Ans: Yes, you can transact at any time of the day. However, in order to get the NAV of the current day you would have to transact before the cut-off time of the scheme. If you place any order after the said cut-off time, you would be eligible for NAV of the next day.

Can I purchase after the cut-off time?

Ans: In order to get the NAV of the same day, you can purchase up to the cut-off time of the scheme, after which you will get the next day's NAV. (If the next day is a holiday, then the NAV of the next working day will be applicable).

Is there a minimum transaction amount for each scheme?

Ans: As decided by the fund, there is a minimum transaction amount indicated against each scheme. You will get to see the minimum transaction amount in the ‘Purchase Units’ screen.

Can I transact on a holiday?

Ans: Yes. You can place your request even on a holiday. However, the request will be processed only on the next business day and the respective NAV will be applied as per the Mutual Fund’s Offer Document. In case it’s a holiday for the Mutual Fund, where their Registered Office is located, those Mutual Funds should accept the investment on the next business day.

What is a Load?

Ans: Load charges are imposed by the Fund Houses to investors to cover the expenses related to distribution/sales/marketing etc. of their schemes is called "Load”.

What is Entry Load & Exit Load?

Ans:Entry Load - The Load charged to the investor at the time of entry into a Mutual Fund scheme is called Entry Load.
Exit Load - The Load that the investor pays at the time of exit from a Mutual Fund scheme is called Exit Load.

Can I switch in or out of a scheme?

Ans: Yes, you can switch out from your existing scheme/plan at a current prevailing NAV and switch in to the desired scheme/plan of the same fund house. To do so please click the Switch Schemes option under ‘Give Instructions’.

Are we charged any load for Switching?

Ans: Switching loads shall be as per specification by respective Fund Houses. Some of them do not charge any Switching Loads amongst equity categories.

How do I know where the Mutual Fund Scheme has invested money mobilized from the investors?

Ans: The mutual funds are required to disclose their schemes’ portfolio in the newspapers periodically. Some of the mutual funds send newsletters to the unit holders at the regular intervals, which contain portfolios of the schemes.

The scheme portfolio shows investment made in various securities i.e. equity, debentures, money market instruments, government securities, etc. along with their quantity, market value and % to NAV. These portfolio statements also required to disclose illiquid securities in the portfolio, investment made in rated and unrated debt securities, non-performing assets (NPAs), etc. These portfolios are also available on the AMCs’ websites. These details are provided on IDBIDirect’s MF section. Investors are requested to go through it before investing.

How will I get dividend and redemption payment of MFs bought online?

Ans: Dividend and redemption payment of MFs bought online are directly credited to your bank account through ECS by the concerned AMC/R&T agent.

Is Income from Mutual funds exempt from Income Tax?

Ans: Yes. Your income from mutual funds in the form of dividends is entirely exempt from income tax provided the fund in question is an equity/growth fund where more than 50 percent of the portfolio is invested in equities.

What is the Regulatory Body for Mutual Funds?

Ans:Securities & Exchange Board of India (SEBI) is the regulatory body for all the mutual funds. All the mutual funds must get registered with SEBI. The only exception is the UTI, since it is a corporation formed under a separate Act of Parliament.

Do Mutual fund investments attract Wealth tax?

Ans: No. Under the Wealth Tax Act, all financial assets including mutual fund units are exempt totally from Wealth Tax.

Do investment in Mutual funds offer tax benefit on capital gains?

Ans: If the capital gains earned by you during a financial year are invested in specified mutual funds then such capital gains are exempt from capital gains tax under Section 54EA and Section 54EB of the Income Tax Act.

Can an investor redeem part of the units?

Ans: Yes, one can redeem part units also.

What is an IPO?

Ans: IPO is an acronym for Initial Public Offering. This is the first sale of stock by a company to the public. A company can raise money by issuing either debt (bonds) or equity. If the company has never issued equity to the public, it's known as an IPO.

What is book building?

Ans: Book building is basically a process used in Public Issue for efficient price discovery. It is a mechanism where, during the period for which the Public Issue is open, bids are collected from investors at various prices within a Price Band. The offer price is determined after the bid closing date.

Securities and Exchange Board of India (SEBI) guidelines define book building as "a process undertaken by which a demand for the securities proposed to be issued by a body corporate is elicited and built-up and the price for such securities is assessed for the determination of the quantum of such securities to be issued by means of a notice, circular, advertisement, document or information memoranda or offer document".

What is the number of days for which bid remains open in Book Building?

Ans: Book remains open for a minimum five days in the Book Building process.

What are the types of the Book Building IPO?

Ans: There are two types of Book Building IPOs. One having Floor Price only and the other having Floor and Ceiling price.

What are Floor and Ceiling prices in Book Building?

Ans: When a company offers shares to the public through the Book Building process, it fixes a price band, which sets the minimum and maximum price limits at which the bids can be made by the investors for acquiring the shares of the company. While the Floor Price symbolizes the minimum price at which the investors can bid for the shares, Ceiling Price is the maximum price at which the investor can make bids.

What is 'Cut-Off' price?

Ans: The Cut-off option is an option given only to the Retail Individual Bidders indicating their agreement to bid and purchase at the final Issue Price as determined at the end of the Book Building process.

Is it possible to enter bids less or more than the Floor Price and Ceiling Price respectively?

Ans: No, because the system tends to automatically reject the bids, which are lower than the floor price and higher than the ceiling price.

Who are Retail Individual Bidders (RIBs)?

Ans: Retail Individual Bidders are those that can bid for shares where the application amount does not exceed Rs.2, 00,000/-.

Who qualify as HNI/Non Institutional Bidders?

Ans: If your investment exceeds Rs.2, 00,000/- you will need to make an application as HNI/ Non Institutional Bidder.

Will I have to give my PAN/GIR Number?

Ans: For all IPO applications ensure that you mention your PAN/GIR Number allotted under the I.T. Act and ensure that you have attached copies of PAN card or PAN allotment letter. If the application is made jointly, both the holders have to give their PAN details.

How do I apply for an IPO online on IDBI Direct

Ans:

Login into your trading account by filling Login details.

a.Check your “Buying Power” before placing any purchase order. In case of shortage of funds, you need to transfer funds from your bank account using “Funds Transfer” option.

Click on IPO Menu. IPO’s available during the listing period will be shown.

Choose the IPO in which you want to make an application.

Choose the Demat account number and status.

Enter bid details like quantity and price under Option I.

If you wish to make multiple bids then enter the above details in Option II and Option III as per your requirement.

Click on submit to complete your application.

Can I make multiple applications?

Ans:No, You can make only one application under one given Demat account for a given IPO.

What is the amount of money that I have to transfer if I make 3 bids in a Book Building IPO?

Ans: You will need to transfer an amount equal to the maximum value out of the three bids. i.e. your Buying Power should be sufficient to meet the maximum value out of the 3 bids that you enter.

What will be the allotment and refund process?

Ans: The Issuer Company will decide the basis of allotment and if allotted the shares will be credited to your Demat account under which the application was made. Refund Order if any will be directly credited to your bank account through the Electronic Credit Service (ECS) which is available currently at select centers only where the clearing house is managed by Reserve Bank of India. In other cases the refund will be sent to your address registered against the Demat account with the bank particulars duly printed on it.

What is a Contract Note?

Ans: Contract Note is a statement of confirmation of trade(s) done on a particular day by the Client. A Contract Note is issued in the prescribed format, establishing a legally enforceable relationship between the Member and Client in respect to the Trades stated in that Contract Note.
As per regulatory requirements the Contract Notes for NRI’s are generated on a Gross basis i.e. the value of Buy and Sell trades are separately visible.

How can I view the digitally Signed Contract Note online on www.idbidirect.in website?

Ans: After you log in, you would have to click on STATEMENT -> CONTRACT NOTE -> COMMON CONTRACT NOTE -> . You would have to select the date range and click on. > VIEW REPORT.

Can I print this Contract Note?

Ans: Yes, there is an option of printing the Contract Note. Select Print this document icon and print the contract note on your printer.

Will I receive Physical Contract Notes?

Ans: You will receive the contract note in the physical format ONLY if you have opted for it at the time of account opening else you will be receiving Electronic contract note. If you wish to receive physical contract note after your account is opened, you can mail us your request from your registered email i.d to our custcare@IDBIDirect.in

Do I pay anything for the digitally Signed Contract Notes?

Ans: No, You do not have to pay anything to IDBI Capital or anyone for the Digitally Signed Contract Notes.

For what duration would the digitally Signed Contract Notes will be available on the website?

Ans: You can view the Digital Signature Certificate on the website up to two financial years from the trade date.

Whom should I contact in case I encounter some problems?

Ans: In case you encounter any such situation please send an E-mail at custcare@IDBIDirect.in along with the screen shot of verification fail message.
For any other queries on Digitally Signed Contract Notes you need to send the E-mail at redressal@idbicapital.com.

What is the legal framework for digitally signed documents?

Ans: Government has enacted the IT Act 2000 with an aim to provide a legal and regulatory framework for promotion of e-Commerce and e-Governance. The Act contains the provisions with regard to Legal recognition of digital signatures, security procedure for electronic records and digital signature, appointment of Certifying Authorities and Controller of Certifying Authorities, Issue of license to Certifying Authorities to issue digital signature certificates, etc. among other legislative provisions.

What is a Digital signature?

Ans: A Digital Signature should not be confused with a digitized signature (a scan of a hand-written signature).
A Digital Signature is an encryption and decryption process that does two things:

Positively identifies the author of an electronic message (who has digitally signed the message).

Verifies the integrity of the message (that it has not been tampered with during its transmission).

Digital Signatures are based on the RSA public key encryption system. In this system the author of a message keeps his/her private key secret and publishes the corresponding public key. Any text encrypted with the private key can be decrypted with the public key, and vice versa. However, the knowledge of the public key is not sufficient to deduce the private key.
Therefore the holder of a public key cannot pretend to be the holder of the corresponding private key.

How does a Digital signature look like?

Ans: A sample Digital Signature looks as under:

What is a Digital Signature Certificate?

Ans: A Digital Signature certificate is a computer-generated record. It contains the identity record. It contains the identity of the subscriber (holder of the certificate), the public key which is digitally signed by the Certifying Authority. The Digital Signature certificate is associated with both a public key and a private key.

Who can issue a Digital Signature certificate to a subscriber?

Ans: A Certifying Authority can issue a Digital Signature certificate to a subscriber. The IT Act and the Certifying Authorities Rules framed under the Act stipulates the methods for issuance of a Digital Signature certificate.

What is a certification authority & who appoints them?

Ans: A Certifying Authority can issue a Digital Signature certificate to a subscriber. The IT Act and the Certifying Authorities Rules framed under the Act stipulates the methods for issuance of a Digital Signature certificate.

Can a digital signature be tampered or forged?

Ans: Almost Impossible .It is protected by several layers of highly complex encryption.
With Digital Signatures, forgery is much more difficult than forging a handwritten signature. Firstly, a Digital Signature is more of a process than just affixing a signature.
For example, when the document is "Digitally Signed", the Digital software scans the document and creates a calculation, which represents the document. This calculation becomes part of the "Digital Signature." When the recipient authenticates the signature, a similar process is carried out. The sender's and the receiver's calculations are then compared. If the results are the same, the signature is valid; if they are different, the signature is not valid.

How is IDBI Capital making use of this technology?

Ans: IDBI Capital is making use of this technology to sign the contract notes digitally and making the same available online.
Digitally signed Contract Notes would be made available to the customers by evening on the trading day itself. Features include the provision to verify the authenticity of the Digital Signatures.
SEBI has permitted issuance of digitally signed contract notes vide its Circular (SMDRP/POLICY/CIR-56/00 dated December 15, 2000), With the appointment of Certifying Authorities, and the approval from SEBI, Digitally Signed Contract Notes are now acceptable as legally valid document.

How do I place a Cash Segment Order?

Click on 'Trade Now' and login into your IDBI Capital Account.

Under the 'Equity' tab, click on 'Buy/Sell'.

Choose 'NSE/BSE' under 'Exchanges'.

Check the Scrip Code in the order box. If you do not know the code, type the first 3 letters of the scrip and choose the scrip name from the filtered list.

Under 'Product option', select Cash.

Enter the type of order quantity & price. If you are placing a limit order please mention the limit price. Please note that the limit price should not be more than 16 % of the previous day's close.

If the order size is large, you may choose to mention the disclosed quantity. This should not be more than 10% of the total order size.

Click on 'Place Order'. Now click 'Submit' .

You will be directed to the Order Confirmation option. Please reconfirm the order details, make changes if necessary, else if the details are correct click on 'Confirm' to finalise your order.

You will be shown the Broker Reference number. You can also check the status of your order under the 'Order Book' section.

Once the order is traded, the details of the trade will be available in the “Trade Book”.

How do I place a Margin Order?

Click on 'Trade Now' and login into your IDBI Capital Account.

Under the 'Equity' tab, click on 'Buy/Sell'.

Choose an exchange under 'Exchanges'.

Check the Scrip Code in the order box. If you do not know the code, type the first 3 letters of the scrip and choose the scrip name from the filtered list.

Under the 'Product’ option select Margin.

Enter the type of order, quantity & price. If you are placing a limit order please mention the limit price. Please note that the limit price should not be more than 16 % of the previous day's close.

If the order size is large, you may choose to mention the disclosed order quantity. This should not be more than 10% of the total quantity for which you are placing the order.

Click on 'Place Order'. A pop-up message will show you the margin required. Now click 'Submit'.

You would be directed to Order Confirmation option. Please reconfirm the order details, make changes if necessary, else if the details are correct click on 'Confirm' to finalise your order.

You will be shown the Broker Reference number. You can also check the status of your order under the 'Order Book' section.

Once the order is traded, the details of the trade will be available in the “Trade Book”.

Buy Today Sell Tomorrow (BTST)

In a typical trading transaction, the credit of shares in your demat account happens on T+2 after you buy a stock. And, you can sell it only once you receive the stock in your demat account.
Under BTST facility, you can buy a stock today and sell it before it is credited in your demat account. Please note that any delivery shortage resulting on account of short receipt of stocks purchase in the first leg remains a risk that the clients may be need to accept. Please note that only a select few stocks are enabled under BTST.

What is 'ENCASH'?

The ‘ENCASH’ facility helps you to get sale proceeds credited to your bank accounts on the trading date. This facility will be enabled only for Sell transactions, and sales proceeds of the orders executed in this product will be credited on the same day, provided the stock is actually delivered for settlement. (as against the normal sell trade & T+2 settlement). The funds will be credited in advance, thereby increasing your liquidity. A special brokerage rate is applied for all EnCash transactions.

What are the salient features of ENCASH?

ENCASH is available only for the equity segment. Only fresh sell orders are allowed in ENCASH trade transactions. At present, this product is being offered only for transactions on the Bombay Stock Exchange (BSE). The stocks need to be liened / hold marked from the client’s demat account.

Can an ENCASH order be converted to Cash n Carry (CnC) order?

No. ENCASH orders once placed cannot be converted to CnC order or to any other product type. In the same way, a CnC sell order or any other order type, once placed, cannot be converted to an ENCASH order.

Can an ENCASH order be treated as a square-off order?

No. ENCASH orders will not be treated as square off orders, even if there is a buy CnC or any other order type for the same scrip in the same trading session / day.

Can the client place an off-market order in ENCASH?

No, Off-Market orders are not allowed under ENCASH.

What is a Cover Order?

A 'cover order' allows you to place two simultaneous counter orders for the same scrip. The first order will be a Market order and the second, would be a counter order with a Stop loss limit and trigger price mentioned. Also, the margin requirement in this product would be very low compared to the normal margin product, thus offering an enhanced buying power to the client.

Exchange Traded Funds (ETF)

Much like stocks, an Exchange-traded fund (ETF) is an investment vehicle traded on stock exchanges. An ETF holds assets such as stocks or bonds. It trades at approximately the same price as the net asset value (NAV) of its underlying assets over the course of the trading day.

How do I trade in ETFs?

Log in to your Trading account.

Click on 'Buy/Sell'

Choose the scrip's code & no. of units to trade.

Place your order.

Off-Market Orders

“Off Market Order” facility helps you to place your Buy/Sell orders even when the markets are closed.

You can place an off-market order online any time before 8:55 am and after 10 pm on trading days and through a non trading.

Only limit orders can be placed in the Cash & Margin segment.

Orders will be sent to the exchange when the markets re-open.

If there are technical problems, the off-market orders will be re-routed / terminated and the clients would need to place fresh orders.

If the limit price is triggered when the market opens, the order would be executed.

You can cancel/modify your order anytime before the price is triggered.

Equity SIP

A Systematic Investment Plan (SIP) is a powerful tool to approach the market in a disciplined manner with an objective of building up your long term portfolio by using the market volatility to your advantage and thus averaging your cost of investments. A one-time administrative charge of 100/- will be chargeable. Normal brokerage charges will be applicable to customers on the shares purchased / sold.

How to create SIP Online

Log on to your trading account and choose create a SIP basket from menu.

Choose the nature of SIP.

Select the Frequency of the SIP. It could be daily weekly, fortnightly, monthly.

Select the period of the EQUITYSIP, which can range from 24 months – 120 months and choose a start date.

Select the scrip (s), gold ETF or index ETF that you wish to invest in / the amount of SIP instalment.

Tick on Agree to Terms and Conditions and confirm your order.

What is a futures contract?

Futures Contract is a legally binding agreement to buy or sell an underlying security on a future date. Future contracts are the organised/standardized contracts in terms of quantity, quality (in case of commodities), delivery time and place for settlement on any date in future. The contract expires on a pre-mentioned date which is called the expiry date of the contract. On expiry, futures can be settled by delivering the underlying asset or cash. Cash settlement enables the settlement of obligations arising out of the future/option contract in cash. In Indi, the contracts are non deliverable, implying that the buyer cannot expect the delivery of underlying security and the trade is settled in cash based on the cash market price of the underlying security.

What is an Options contract?

Options Contract is a type of contract which gives the buyer/holder of the contract the right but not the obligation to buy/sell the underlying asset at a pre-determined price within or at the end of a specified period. The buyer / holder of the option purchases the right from the seller/writer for a consideration which is called a Premium. The seller/writer of an option is obligated to settle the option as per the terms of the contract when the buyer/holder exercises his right. The underlying assets are the same as in a futures contract.

An Option to buy is called Call option and option to Sell is called Put option. Further, if an option that is exercisable on or before the expiry date is called American option and one that is exercisable only on expiry date, is called European option. The price at which the option is to be exercised is called Strike price or Exercise price.

What are Index Futures and Index Options Contracts?

Futures contract based on an index i.e. where the underlying asset is an “Index” rather than a single scrip / commodity are known as Index Futures Contracts. For example, futures contract on NIFTY Index and BANKNIFTY Index. These contracts derive their value from the value of the underlying indices.

IDBI CAPITAL MARKETS & SECURITIES LTD. (IDBI Capital), a wholly owned subsidiary
of IDBI Bank Ltd., is a fully integrated financial services provider catering to
the needs of retail, institutional and corporate clients. Incorporated in December
1993, today it has a net-worth of around INR 3 billion and employs over 200 employees
in
14 branches, spread over 14 cities across India. The Retail Broking &
Distribution division of IDBI Capital offers online trading in Equities, F&O, Mutual
Funds and IPOs, through the investing portal, www.idbidirect.in.
We also distribute various Third Party Products, like Fixed Income Products, Mutual
Funds, etc. We are amongst the top 10 MF distributors in India.